NextDecade announces credit facilities, other financing for Rio Grande LNG project

By Wendy Van Sickle

Columbus, Ohio, July 13 – NextDecade Corp. said it closed senior secured non-recourse bank credit facilities of $11.6 billion, comprising $11.1 billion in construction term loans and a $500 million working capital facility, and a $700 million senior secured non-recourse private placement notes offering.

The financings come as part of NextDecade’s final investment decision to construct the first three liquefaction trains at Rio Grande LNG export facility in Brownsville, Tex., according to a news release.

The company also announced it executed and closed a joint venture agreement for phase 1, which included approximately $5.9 billion of financial commitments from partners Global Infrastructure Partners, GIC, Mubadala Investment Co. and TotalEnergies. NextDecade committed to invest $283 million in phase 1.

In connection with the final investment decision, Rio Grande LNG issued a notice to proceed to Bechtel Energy Inc. to begin construction under its lump-sum turnkey engineering, procurement and construction contracts, which have a final cost around $12 billion.

The remaining expected project costs to be covered by the financings are owner’s costs and contingencies of approximately $2.3 billion, dredging for the Brazos Island Harbor Channel Improvement Project, conservation of more than 4,000 acres of wetland and wildlife habitat area and installation of utilities of approximately $600 million and interest during construction and other financing costs of approximately $3.1 billion.

Based in Houston, NextDecade is an energy company that aims to accelerate the path to a net-zero future. Based in Paris, TotalEnergies is an oil, gas and solar power company.

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